Commodities Essential - August 23, 2011

At the mercy of the banks (again)?  

We are aware of major risks to the global and national economies. And we’re even aware of how such risks might transfer across global financial markets. But are we really prepared for another black swan event? Are we prepared should the dominoes [that we can’t see and don’t know exist] begin to fall? 

Perhaps officials can manage subpar growth and implement policies aimed at restoring confidence in markets despite a softer business climate. But a global banking crisis is too heavy for them to manage now that it’s clear their first attempt was not much more than a shell game.

Expect much more of the same as policymakers grow desperate. But don’t let down your guard to expect an identical outcome in the markets - a banking crisis in Europe will have far-reaching consequences. This relief rally in risk appetite could last a couple weeks; but after that I would imagine there is plenty of downside left. 

Commodities Essential. 23 August 2011 

Trade Essentials.

Let’s adjust our stop-loss on CORN (Teucrium Corn Fund). We are seeing a nice open gain but corn prices are vulnerable to resumption in risk aversion, i.e. if stocks cannot muster additional upside in the current relief rally. 

CORN (Last Price: $49.20)

CANCEL AND REPLACE your order to SELL ALL your shares of Teucrium Corn Fund, symbol CORN, at $44, STOP. New Price: $46.90, STOP; this order is good till cancelled.